Tap Transactions up 162% in Q3 2015 over Q3 2014: Moneris

by Istvan Fekete on January 5, 2016

wearable-tech-and-mobile-payments-story3Canadians are ready for a cashless life, according to an online survey conducted by processing payments firm Moneris. Of 1,000 surveyed, 77% said they preferred paying by credit or debit card, and 65% that they rarely bought anything with cash anymore.

Cash will stay around, though, because it has been the payment method used for so long. However, there is significant growth in contactless payments – using credit cards or mobile apps – which signals that Canadians are ready to forget the feel of real money in hand.

Moneris data shows a 162% increase in tap transactions for the third quarter of 2015 compared to the same period in 2014. First, we must note that most Canadian banks have their own mobile application, some of which allow tap-based purchases.

There are limitations, though: You have to own one of the limited number of cards, use an Android or BlackBerry smartphone, and be one of the Big Three’s customers.

By the end of 2015, things had changed a bit: Apple Pay was launched in Canada, although with limited availability, thanks to its partnership with Amex.

However, until merchants upgrade their payments systems to accept all types of mobile payments, cash will continue to be the winner. By the way, the mobile payment experiment is somewhat restricted to North America as the writer of The End of Money, David Wolman, documented in his book when he traveled to India: He had to take out cash, because the payment infrastructure in the country wasn’t ready for his mobile wallet.

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Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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